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Following his service in the Army, Walter Gulick takes a job as a sparring partner in a Catskill training camp run by Willy Grogan and his girl friend, Dolly. Willy decides to turn Walter into a professional fighter over Dolly's objections. The lad earns the nickname "Kid Galahad" by rescuing Dolly from gangsters to whom Willy is in debt. After a series of sensational victories, Walter decides to give up boxing and settle down with Willy's sister, Rose. Upon hearing the news the gangsters warn Willy that his man must not be permitted to win his last bout, and they match him against Sugar-Boy Romero, a highly experienced fighter. Believing Willy guilty of having arranged the match for spite, Dolly walks out on him. Before the fight, Walter's trainer is offered $500 not to work in his corner. When he refuses the bribe, the hoodlums break his fingers. Walter arrives on the scene and, after a skirmish with the gangsters, goes into the ring. Despite a severe beating, he knocks out his opponent. Dolly returns to Willy, and Walter is free to marry Rose and open an auto repair shop.